Good news! The retail powersports market continues on a roll! According to composite data from more than 1,650 dealerships in the US using CDK Lightspeed DMS, sales increased 23.9 percent in February 2021as compared to February 2020. Early results from the Q1 2021 Powersports Business/BMO Capital Markets Dealer Survey reflected that more than half of all respondents said business was trending above plan.
In general, a positive sentiment has also spread across several economic indicators. According to the U.S. Bureau of Labor Statistics, unemployment rates in each of the large metropolitan areas dipped below 10 percent in February. The stimulus at the end of 2020 ($900B) and the relief package signed in early March ($1.9T) equate to nearly 14 percent of US GDP.
However, there are a couple of wrinkles which could put a damper on that optimism. Inventory continues to be an issue, both in terms of units and parts for all makes and models. Many dealers responding to the Powersports Business/BMO survey listed lack of inventory as the number one issue impacting their business. Certainly pent-up consumer demand bodes well for driving traffic to the store, but there is another issue facing powersports dealers. What happens when you don’t have enough staff – or the right talent – to capitalize on that consumer demand?
The Talent Challenge
People are a dealership’s greatest asset – and often its greatest challenge. In an EFG study conducted among retail dealers across the U.S., 65 percent of respondents said recruiting and hiring high-quality people was their number one challenge.
Every dealer and general manager has made a poor hiring decision in the past, and chalked it up to “we’ll do better next time.” But what did that decision cost you? Our research found that every Poor Hiring Decision® (P.H.D) costs the dealership $75,000!
To address this challenge, we developed a Top Performer Profile, a powerful tool based on extensive, proprietary research to match individuals whose personality characteristics and work style will make them successful in the powersports dealer space.
In normal years, it might be easier to gloss over the bad hires and the potential lost income. But with consumer demand high as our economy emerges from the pandemic, hiring the right talent could mean the difference between a market leader or a struggling lot fighting to capture sales.
The team at EFG Companies brings a wealth of strategic business acumen and tools to drive value for our clients. We’re not just your F&I provider – we are your business partner. Contact us today to learn more about our profitable solutions for your business.